Adams Resources & Energy, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a mixed performance compared to the same periods in 2023. Total revenues for the third quarter decreased to $695.2 million from $760.6 million, while revenues for the nine months increased slightly to $2.075 billion from $2.036 billion. The decline in quarterly revenue was primarily attributed to a decrease in crude oil marketing revenue, which fell to $660.8 million from $719.9 million, driven by lower crude oil volumes and a decrease in market prices.

The company experienced significant operating losses, reporting $(5.6) million for the third quarter, a stark contrast to operating earnings of $3.9 million in the same period last year. For the nine months, operating losses totaled $(8.4) million, compared to earnings of $3.1 million in 2023. Net losses for the third quarter were $(4.5) million, compared to net earnings of $2.3 million in the prior year, while net losses for the nine months reached $(7.3) million, down from net earnings of $1.1 million.

The crude oil marketing segment's operating earnings for the third quarter were $2.3 million, a decrease of 70% from $7.7 million in 2023. This decline was influenced by inventory valuation losses and lower overall volumes due to the expiration of a significant purchase contract in the Red River area. The average crude oil price received also fell from $79.26 per barrel in Q3 2023 to $73.99 per barrel in Q3 2024.

In terms of costs, total expenses for the third quarter decreased to $700.7 million from $756.7 million, reflecting lower driver compensation, insurance, and fuel costs. However, general and administrative expenses increased by $0.4 million for the quarter and $3.1 million for the nine months, driven by higher salaries and professional fees.

Strategically, Adams Resources & Energy announced a merger agreement with Tres Energy LLC, which will result in the company becoming a wholly owned subsidiary. Shareholders are set to receive $38.00 per share in cash, pending approval. Additionally, the company amended its credit agreement, adjusting financial covenants to improve its leverage and coverage ratios.

As of September 30, 2024, total assets were reported at $333.0 million, down from $361.3 million at the end of 2023, while total liabilities decreased to $248.2 million from $268.6 million. The company maintained cash and cash equivalents of $25.1 million, a decrease from $33.3 million at the end of 2023.